Financial Independence and Early Retirement (FIRE) provides an exciting chance for individuals looking for ways out of the rat race. By increasing savings and investments, cutting spending, and creating multiple streams of income.
FIRE advocates strive to save enough money for retirement expenses and live comfortably from their investment portfolio, with this approach providing the freedom of financial independence in your 30s or 40s.
How to Reach FIRE
Attaining financial independence through early retirement (FIRE) involves major transformation in both your money and mindset, taking years to reach, but just contemplating and planning for it is an invaluable first step towards this journey.
Followers of the FIRE approach strive to save enough for early retirement using an aggressive savings rate and frugal living habits, and may rely on passive income streams such as rental properties or dividend-paying stocks as sources.
To reach financial independence, it will take saving 25 times or more your annual expenses to become financially independent. To determine an estimate, multiply how much you spent last year by 25.
To meet your savings goal, one approach would be to cut expenses by living below your means, such as cancelling subscriptions to music streaming services or meditation apps. Another way is increasing income by working more hours, starting a side gig or applying for new jobs.
Permjot Saavedra
Individuals often harbor an aspiration to retire early and gain control of their lives through aggressive saving and investing practices, leading them to reach financial independence and pursue meaningful life purposes with greater ease.
They can refocus their careers to achieve what’s most fulfilling and exciting – like Permjot has done since becoming financially independent by pursuing his passions like leadership development.
Permjot finds great satisfaction in helping others reach their goals and discover their sense of purpose. Now based in Halifax, Permjot enjoys classical music concerts as well as spending time with his family. Additionally, he engages in pro bono work such as mentoring and leadership advisory as a way of giving back and creating valuable connections.
Rachel Rose
Rachel Rose hails from Connecticut with a rich, soulful voice and strong nostalgia ties. From playing YouTube covers to performing in choir ensembles and local venues like Spiderhouse, Hole in the Wall and Cheer Up Charlies; Rachel has made quite an impressionful musical journey!
Financial independence has altered her mindset about life. Now she focuses on doing what makes her happy rather than amassing more material possessions – spending time with family, exploring new places, and taking creative projects such as making music.
Financial independence gives her the courage to speak out when she perceives injustice; no longer fearing a job loss, she can now more openly voice concerns such as workplace bullying – something she wouldn’t have been able to do prior to attaining FIRE.
Chris Mamula
Personal finance can be daunting, but this book makes the subject manageable. By weaving together numerous stories into an accessible framework for financial independence. This includes tracking spending, cutting core expenses and saving at least 50% of income – as well as investing tax efficiently, minimizing fees, mitigating risk and being widely diversified.
Chris Mamula used traditional retirement planning principles combined with creative lifestyle design to successfully retire as a physical therapist at 41. Since then, Chris has written on wealth building, DIY investing, financial independence and early retirement (FIRE), lifestyle design at his blog Can I Retire Yet? as well as primary authoring Choose FI.
He is the co-founder of Abundo Wealth, an advice-only subscription financial planning firm which leads the industry in eliminating conflicts of interest and providing comprehensive advice at an affordable cost. Additionally, he provides one-on-one financial coaching.
